The White Stripes Animal Encounters operates a drive through tourist attraction. The company adjusts its accounts at the end of each month. The selected accounts appearing below reflect balances after adjusting entries were prepared on April 30. The adjusted trial balance shows the following: Other data:
1. Three months' rent had been prepaid on April 1.
2. The buildings are being depreciated at $7200 per year.
3. The unearned ticket revenue represents tickets sold for future visits. The tickets were sold at $5.00 each on April 1. During April thirty of the tickets were used by customers.
Instructions
(a) Calculate the following:
1. Monthly rent expense.
2. The age of the buildings in months.
3. The number of tickets sold on April 1.
(b) Prepare the adjusting entries that were made by the White Stripes Animal Encounters on April 30.
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q245: Expenses paid and recorded in an asset
Q246: An accounting period that is one year
Q247: On-Time Truckers prepares monthly financial statements. On
Q248: The _ principle gives accountants guidance as
Q249: An adjusted trial balance proves the _
Q251: Yankee Hotel Foxtrot initiated operations on
Q252: The _ assumption divides the economic life
Q253: Match the items below by entering the
Q254: Failure to adjust a prepaid expense account
Q255: In developing an accounting information system it
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents